S. Korean banks’ lending rate falls for 3rd month in August

SEOUL, Sept. 27 (Xinhua) — South Korean banks’ lending rate fell for the third consecutive month amid expectations for a policy rate cut later this year, central bank data showed Friday.
The weighted average rate for new bank loans shrank 0.07 percentage points over the month to an annualized 4.48 percent in August, after sliding 0.07 percentage points in June and 0.16 percentage points in July, according to the Bank of Korea (BOK).
Expectations ran high for the BOK’s policy rate cut later this year after the U.S. interest rate cut earlier this month.
The BOK has left its benchmark interest rate unchanged at 3.50 percent since January last year.
The rate for banks’ new corporate loans retreated 0.11 percentage points to 4.67 percent in August compared with the previous month.
The lending rate for big companies went down 0.11 percentage points to 4.78 percent, and the rate for small firms declined 0.10 percentage points to 4.59 percent.
The rate for new bank loans to households added 0.02 percentage points to 4.08 percent in August on a monthly basis, marking the first rebound in three months.
The mortgage loan rate for households gained 0.01 percentage points to 3.51 percent, but the credit loan rate dipped 0.13 percentage points to 5.65 percent.
The weighted average rate for new bank deposits was down 0.06 percentage points over the month to an annualized 3.35 percent in August. ■